My cousin and her husband are in this situation and she asked me for advice, so I thought I would pass on the situation. These are their stats:

*Both 22
*$2,000 in savings
*One income (she is a student)
*Debt free (paying rent though)
*After she graduates in a year or two they will be starting a family and she will continue to stay at home, so they will always be one income

He is military and will be reenlisting and receiving a bonus of $40,000. It might seem like a lot, but because he makes so little through out the year it kind of makes them become normal!

If you were them (with the same situation) what would you do with that money?

Edited to say: The money will not be taxed-- they will actually receive the whole amount, because he will be deployed. They are planning on saving it all, but aren't sure about how much to allocate to certain things (house, retirement, etc) They might not recieve it all in one sum, but that shouldn't effect what to do with it

Well, normally enlistment bonuses are not an all at once payment, it is broken down throughout his enlistment so it won't really be a "big" chunk of change. But either way, I would have them save it for the future purchase of their home and beginning their family.

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I am only one, but I am one. I can not do everything, but I can do something. I must not fail to do the something that I can do. -Edward Hale

They will also tax the bonus pretty heavy. It's around 27% I think. I would do an emergency fund and save the rest for their home and Family.

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